If you have a Chase Freedom credit card (whether it’s a VISA or MasterCard), you’ve probably got a similar mailing in your mail box.  As you can tell above, I have too many Chase Freedom cards (although some of them are duplicate ones, I have a strange habit of keeping credit cards that are long-since expired).

Before you start thinking I went crazy with the credit card sign-ups, Chase basically converted all my credit cards to their “Freedom” lineup through out the years, as they consolidated their credit card program under their flagship card product and revamp their reward programs to the “Ultimate Reward” structure.

This is just a friendly reminder to anyone that may also have had their Chase credit card converted to a Chase Freedom card.  For the summer of 2010, you’ll get 5% cash back on travel related purchases, which in fact is a pretty sweet deal.

Notes on the 5% cash back:

• Purchase categories are gas, airlines, auto rentals, and hotels
• Up to $1,500 only. So basically maximum of $75 in cash back
• Valid between July 1st and September 30th, 2010
• Sign up at chasebonus.com
• Or call 1-866-913-4992
• Pictures of the opt-in process can be found below

The fine prints are in the brochure, but things you basically need to be aware of are the fact that you have to opt-in for this cash-back offer. Offer applies only to net purchase made with your credit card during the promotion period, online and catalog purchases are not eligible to receive the bonus reward UNLESS the merchants have correctly identified and billed the transaction (less of an issues these days if you purchase airline tickets or the hotel booking directly from the airline/hotel).

This offer may be available to certain Chase Freedom card members only, as per the fine print in the mailing. But seeing as how all four of my credit card received the similar offer, I’m assuming that they’ve cast a pretty wide net in this summer promotion.

If you’re not familiar with the Chase Freedom card, the gist is that it’s a 1%/5% cash back credit card with rotating bonus cash back category. I’m personally not a real fan of rotating cash back categories (something Discover card introduced back in the days), but it’s definitely a program that’s much easier for card companies to maintain in terms of profitability. In this particular situation, the cash back category is timely and useful. I’ll most likely easily reach the cash back limit for this promotion as I have a few trips lined up in the summer. If you have a Chase Freedom card and you’re planning for some summer trips too, opting in for this offer is a no brainer.

This post "Chase Freedom 5% Cash Back for Summer" is from StopBuyingCrap.com.

While it’s little solace to being denied credit (let’s face it, rejection blows), Federal law dictates that you should be given clear reason as to why you’ve been denied, and free access to your credit report so you better understand your credit history.

One problem in the previous solution is that by providing consumer with only their credit report, many people couldn’t make heads or tails on where they stand in terms of credit worthiness.  Unless you’ve read up on your credit report know-hows, it can be at times difficult to distinguish what’s positive or negative — if any — in your list of credit history.

Hot on the heels of numerous financial regulation reform and amendments, Senator Mark Udall of Colorado introduced the Fair Access to Credit Scores Act as an amendment to the hotly debated Wall Street Accountability legislation.  This amendment, which was approved by a voice vote by the Senate on Monday, will allow consumers to receive a free credit score whenever the score has negatively impacted the lending/approving decision process.

Here’s what you can expect if the amendment becomes part of law:

• If you’re denied credit or approved for a more disadvantaged rate, then you’ll have free access to your credit score.
• The credit score you’ll have access to is the specific score that impacted you in the decision making process, not some random score from an unknown company or credit reporting bureau, nor would it be a range of score.  Since most lenders are still using FICO scores, the leading credit scoring model, that means it would most likely be the credit score you’ll receive and not some “FAKO” score.
• No maximum amount or limit to the amount of scores you can get for free.  If you’re denied credit by lenders fifteen times, you’ll get fifteen scores. Though one prudent move may be to closely examine why your credit isn’t up to par before you apply for further loans.
• If credit score was one of the many factors in denying a potential employment, you will also receive a free credit score.  You should note however that credit report is but one of many hiring factors for many employers.

This post "S. 3247: Fair Access to Credit Scores Act: Denied Credit? You May Get Free Credit Score in Future" is from StopBuyingCrap.com.

While in Italy last month, I extensively used this credit card along with my Schwab debit card as my traveling pals and I roam around tourist traps in a decisively awesome country:

As you can see above, had the Schwab credit card emulated other Visa, MasterCard, and American Express credit card’s usual 3% foreign transaction fee,  my traveling cost would have went up by an additional $21 or so dollars.  Not a whole lot of money in the grand scheme of things, but that’s still three-and-a-quarter-less margherita pizza I’d be able to eat.

And that, my friends, is what personal finance should truly be about: how many slices of pizza you may be missing out on.

This post "No Foreign Transaction Fee = Why I Still Love My Schwab Invest First Credit Card" is from StopBuyingCrap.com.

This guest post is brought to you by The Digerati Life, where you can read about all things financial. SVB from The Digerati Life particularly enjoys discussing investment topics and the latest financial tools that help make money management interesting and easier to do. Why not subscribe to her feed?

 
Clearly, the credit crisis has done a number to the credit card industry, making the competition become a little tougher among credit card companies. In the past, credit card holders could earn substantial rewards with the kind of programs available through companies like Visa, MasterCard, Discover Card and Citibank. Back then, you could receive significant savings from online purchases when you register your reward credit card to earn points or from a cash back credit card that credits you a cash bonus on a regular basis.

These days, what do we have? Great credit card programs are dwindling, with some banks even closing their credit card divisions (remember the fiasco at Advanta?) because of the current business environment. Other card programs have been merged with others as well, leaving fewer options for card customers who are looking for better deals. I don’t think this is a surprise either, since there are cost savings (from the point of view of companies) when programs are eliminated or merged.

So as consumers, what can we do during this time of skimpier deals from the card industry? If you need a new credit card and are shopping around for one, there may be a few things you’d like to do:

1. Keep abreast of the changing terms of credit card programs.

It’s not just reward programs that are diminishing: I’ve noticed the terms on balance transfer cards becoming slimmer over time as well. While we used to have such cards sporting no fees, zero percent APRs for long periods of time (a year or more), all these great benefits have been cut back significantly. If you’re seeing this sort of thing going on with your cards, just make sure you’re not caught off guard by these changes. Don’t assume that you won’t be paying fees forever, or count on the fact that you’ll be paying the same low rates indefinitely.

2. Credit card programs could disappear without notice.

The time has come when you should think of spending those points fast, and not hold it for too long. This is because, with the recent financial situation, credit card companies may withdraw the schemes anytime without notice and drop schemes at will. This is a warning for reward credit card holders.

Reward credit cards are quite attractive to consumers for the kind of rewards that the card offers. It is a way not only to attract customers but also to encourage them to spend more to earn points. The consumers tend to save up these rewards just by holding them, waiting to re-deem the points for something that they really want. It is time to be careful with this, and this is a reminder that credit card companies have no legal binding in continuing with the reward program, and may withdraw them anytime.

3. Stick with reputable credit card companies.

A smaller bank may offer you really sweet deals on credit cards, but there may not be that same stability that you’ll find if you work with larger, well-known companies. While Advanta is an example of a large company whose credit card division failed in a huge way, a scenario like this is more likely to be repeated at smaller outfits that have less of the clout that financial institutions carry. With bailout money going to larger banks and institutions, some of that is bound to shore up the credit card businesses of more recognizable names. You can certainly take this into consideration when you sign up for your next card!

These are just some of the points to keep in mind when shopping for a credit card in these tougher economic times. With a little digging, you may be able to find a credit card or two that may still work out well for you.

This post "Shopping For A Credit Card During A Time Of Tight Credit" is from StopBuyingCrap.com.

There was a joke somewhere in there, linking cold stuff to freezing credit reports, but if you’re reading up on credit freeze because of identity theft problems, the last thing you’d probably want is a lame joke from an online financial nerd.

Fair enough. Here’s a complete breakdown on credit freeze, links to the major credit reporting agency (credit bureau) so you can request a freeze, and links to the fees for freezing your credit reports.

What’s a Credit Freeze?

A credit freeze (also known as a credit report freeze, credit lock down, credit report lock down, or a security freeze) is a way for you to prevent  access to your credit file by anyone (that includes you).   A credit freeze prevents reputable creditors from accessing your credit file, thereby preventing anyone from opening a new account, because the creditor will need to first check your credit report and score before being able to issue you credit.  Because of the way it prevents access to your credit report, a credit freeze is often the best way to stop an identity thief from opening new credit accounts in your name.

What a Credit Freeze Doesn’t Do

Unfortunately, a credit freeze does not prevent an identity thief from using your existing accounts, your existing personal information, or open non-credit checking accounts. Despite this, if you are a victim of identity theft, it is most likely prudent for you to request a credit freeze with the three major credit reporting agencies, as this will limit the damage to your existing accounts.

When Should You Request a Credit Freeze?

If you suspect an identity theft, or that you may be a target of identity theft (lost of personal mail, stolen wallet, stolen statements, etc.), you may want to consider a credit freeze depending on the type of personal information you think may have been compromised.  If your social security number has been stolen or there are evidence of misuse, a credit freeze is probably a good idea.  If your name, address, or phone number has been exposed due to stolen mail or a security breach by an organization, then you might want to consider setting up a fraud alert on your credit report.  A fraud alert differs from a credit freeze in that it does not prevent access to your credit report, but it does notify potential credit issuers to verify your identification before extending you credit.

How To Freeze Your Credit Report

Freezing your credit report can be done by a request to each of the three major credit reporting agency.  47 states and the District of Columbia has enacted laws requiring credit bureau to allow consumers to enable credit freeze.  Although the state of Alabama, Michigan, and Missouri do not have credit freeze laws, the three major credit bureaus have voluntary offered the credit freeze program to residents of those states.

The fees involved in freezing your credit report will vary by state, and is free in any state for an identity theft victim.  In some states, you may be required to submit documentation to waive the fee, such as a police report or identity theft report by a government agency. The fee ranges in $5 to $10 for non-victims, and may cost additional fees when you want to temporarily lift the freeze, or completely remove the freeze.   Check the links below to see the rates for each credit bureaus and your respective state.

Requesting a Credit Freeze with Equifax

Credit freeze page: (Equifax Security Freeze FAQ)
Fees: $5 ~ $10  (Complete fee rate table for all states)

Unfortunately, the only way to request a credit freeze with Equifax is by written request.

Your request should include:

1. Name
2. Address
3. Date of Birth
4. Social Security Number
5. Proof of current address (e.g., utility bill)
6. Payment of fees by check or credit card.

Mail the request by certified mail to:

Equifax Security Freeze
P.O. Box 105788
Atlanta, Georgia 30348

Remember that if you are a victim of an identity theft, to waive the fee associated with placing a credit freeze, you will need to provide documentation such as a copy of the police report or other related government agency report (DMV) that can verify the identity theft.  Once Equifax has received your request and placed the credit freeze, you will receive a confirmation letter from Equifax with a 10 digit security freeze confirmation number.  You will need this number to lift or remove your credit freeze, so keep it in a safe place.

Requesting a Credit Freeze with Experian

Credit freeze request: (Experian Security Freeze Center)
Fees: $5 ~ $10 (Freeze request page to see rates for all states)

You can request a credit freeze with Experian by visiting the Experian Security Freeze Center linked above, and then click on the link “add a security freeze.” Simply follow the instruction to complete your credit report freeze request.

To submit a written request, include the following information:

1. Your full name, including middle initial and generation (such as JR. SR. II, III, etc.)
2. Social Security Number
3. Date of Birth (month, date, and year)
4. Current address and previous address for the past two years
5. The fee payment for your request (depending on your state, check link above)
6. A copy of a government issued identification card (drivers license, state ID, etc.)
7. A copy of a utility bill or insurance statement

Mail the request to:

Experian Security Freeze
P.O. Box 9554
Allen, TX 75013

Once Experian has placed your security freeze, you will receive a personal identification number (PIN), that you can use in order to temporarily lift, or remove the credit freeze permanately. You can lift or remove the credit freeze by visiting the Experian Security Freeze Center linked above, or call 1-888-397-3742 (1-888-EXPERIAN). The fee to remove your security freeze will depend on the state you’re located in.  If you’re requesting the removal of the credit freeze by mail, include your identification information and the PIN.

Requesting a Credit Freeze with TransUnion

Credit freeze request: (TransUnion State Security Freeze)
Fees: Free online until 7/14/2009 (Security freeze fee rate table for all states)

You can request a credit freeze with TransUnion by using the TransUnion State Security Freeze linked above.  Requesting a security freeze is free online until July 14, 2009 (in two weeks as of writing).  Click on the “first time here” button to initiate your request, or if you already have an account with TransUnion, use your original login information to start the request process.

To request your credit freeze by mail, include the follow:

1. Name
2. Address
3. Social Security Number
4. Fee payment (check rate table linked above)
5. Proof of current residence such as a state issued ID or drivers license

Mail the request to:

TransUnion
Fraud Victim Assistance Department
P.O. Box 6790
Fullerton, CA 92834

You can also make a request via overnight mail to:

TransUnion
Fraud Victim Assistance Department
1561 E. Orangethorpe Ave.
Fullerton, CA 92831

You can also request the credit freeze with TransUnion by phone.  Call 1-888-909-8872 and use the interactive voice response system.  Have your Social Security Number, address, date of birth, and payment method for the fee ready.  Be prepare to select your own 6-digit PIN for future security freeze related transaction (lifting or removing your freeze).  When you request the freeze by online or mail, you’ll also receive a PIN from TransUnion so you can temporarily lift or remove your credit freeze.

As with the other credit bureaus, if you are a victim of identity theft, you can have the fee waived if you submit a copy of a valid identity theft report, a DMV vehicles investigation report, or similar proof that you have been a victim of identity theft.  If you’re a resident of North Dakota, you can fax your request with your identity theft document to 1-714-525-0668, Attention: Security Freeze Request.

photo credit: wondermonkey2k

This post "The Why and How of Credit Freeze" is from StopBuyingCrap.com.

Thankfully, the good folks at Quizzle.com came to the rescue, pulling me from the depths of depression, providing me hope and courage to make another Japanese dish for dinner.

Quizzle.com is a free web service from Quicken Loans (formerly Rock Financial Corporation) that provides you with a free credit report, score, home value and budgeting tools.  I’ve wrote a review on Quizzle about 7 months ago, and in that review, I went over most aspect of the service.  If you’re interested, check the review out.

What I neglected to mention in the review was that Quizzle provides you with a free credit report and score every six months and that the credit report and credit score is based on your Experian report.  So for those of us that are looking for a free source to get an Experian-based credit score, Quizzle.com is the perfect place to visit.

I logged into my Quizzle.com account today and was greeted with a friendly message, informing me that I’m eligible to receive a new, FREE credit report and score. Yay to me!

(click to enlarge)

As I proceed along to request for my free report and score, an update from Quizzle informs me that they have changed the credit score model they’re using to align more closely with other scores on the market, and are now providing users with Experian’s National Equivalency Score with a 360-840 scale (previously, the old scoring model uses a 300-900 scale).

This is probably a good move since it weeds out any possible confusion to the already complicated world of credit scoring (there are many different models and formulation from each of the major credit reporting agency, not to mention FICO credit scores from Fair Isaac).

Once you click on the continue and confirmation button, you’ll be presented with your free, Experian-based credit report and score:

(click to enlarge)

The score is, as mentioned, on a scale of 360-840, and Quizzle will provide you with both a lettering grade and a percentage grade. If you click on “How is this grade calculated?” — Quizzle will list the factors involved in computing your credit score.

The credit report is simple to digest, and you should be able to quickly read it if you’ve requested and viewed a credit report before.  The version Quizzle provides you with is a bit stripped down compared to others (for example, it doesn’t show previous balances and previous payment history), but it does give enough to let you know what open/closed accounts are on your credit report, and what your current reported balance are along with current payment timeliness.

Clicking over to the credit inquiries tab will show you the latest hard credit inquiries on your Experian report. Remember that checking your credit report or score will not be counted as an hard inquiry, and will not affect your credit scores.

Overall, Quizzle’s free credit report and score functions exactly as promised, and having another alternative to receive a bi-annual free report and score is definitely a welcoming move in a time where keeping on top of your financial health is of utmost importance.

If you’re not comfortable with using a third-party website to receive your credit report and score, you should know that Quizzle.com, as noted above, is provided by Quicken Loans, one of the largest online retail mortgage lender in the nation, having provided mortgage lending services for nearly 25 years — so it’s not exactly a fly-by-night company looking to sell your personal information.

This post "Get a Free Experian Credit Score and Report from Quizzle.com" is from StopBuyingCrap.com.

This is actually a fairly big deal, as lenders will continue to be able to get FICO score based on Experian reports through Fair Isaac, but consumers won’t be able to do the same.   It puts us, the consumers, at a fairly big disadvantage — especially when we apply for credit from a lender that uses Experian’s data to determine credit worthiness.  Want to check your FICO score based on Experian before you apply for credit?  Not gonna happen.

The decision by Experian will come into full effect on Feburary 14, 2009.  So if you need your Experian FICO score for whatever reason, you should check your Experian FICO scorenow before it’s too late.

This post "No More Experian FICO Scores for Consumers" is from StopBuyingCrap.com.

Every time I apply for a financial product that requires credit approval, a little bit of anxiety builds up.  Will I be approved? Will I get rejected?  The horrendous waiting-for-an-answer just like when I tried to ask this one girl to the co-ed dance back in high school… maybe if I had shown her my credit report, she would have said yes…

After weeks of waiting and the occasional checking of the application status, I received an approval message from the online application query tool:

A few days later, I received the card and account related literature in the mail:

A credit line of $5,000 was enough to get me the Visa Signature benefits, which is nothing too special as a Signature card has its pro and cons — but I was a bit surprised by the semi-low credit limit granted to me.  Though I rarely spend more than $5,000 per month, there are occasions where I may need to spend over that amount (e.g., buying plane tickets for group of family or friends for a trip).

Hopefully FIA will find it in their grace to increase my credit limit in the future, or I’ll be testing out the no pre-set spending limit “feature” of a Visa Signature card.

All in all, the process was just like applying at any major credit card issuers. FIA Card Service (formerly MBNA) made the process fairly seamless, and integrated their system for the Schwab brand well enough.

After receiving the Schwab Invest First Visa, I promptly opened a Schwab One brokerage account (another inquiry to the credit history), and soon enough linked the Schwab One account to the Invest First Visa card, for future cash-back accumulation (you can do this in the credit card’s online account access).

Because the Invest First Visa card is issued and administered by FIA Card Service, some people may get slightly confused as they’re required to use a different website (schwabbankcreditcard.com) to access their card’s online account services.

Look for a possible full review on the Schwab Invest First Visa in the future where I’ll go over all the nooks and crannies of this cash back credit card.

If you have any question about this particular credit card, feel free to ask. Great wise Cap will steal other people’s answer and copy/paste it in for you.

This post "Schwab Invest First 2% Cash Back Visa Card Approved" is from StopBuyingCrap.com.

I was just about to write a post titled “Death of the Cash back/Rewards Credit Card,” but along came the new Schwab 2% cash back credit card.

Despite my frequent proclaim of love for credit cards (the cash back parts of it, anyway), I’m not a credit loving fiend who opens multiple account and juggles multiple reward credit cards.  It’s simply too much hassle, and too beyond my small brain capacity to handle.

So it was with some minor reluctance that I applied for the Schwab Bank Invest First Visa Card.  Here are some features that immediately attracted me to this credit card:

• Unlimited 2% cash back on all purchases, right into Schwab One brokerage account.
• Cash back is automatically deposited into brokerage account at end of each month.
• No foreign exchange transaction fees (a rare feat indeed amongst credit cards).

The application process was straight forward enough, with usual information being requested.  If you already have a Schwab One brokerage account, things will move along slightly faster.

Although the card is branded as a Charles Schwab Bank credit card, you should be aware that the card is issued and administered by FIA Card Services (formerly MBNA, now a part of Bank of America).  Thus, any future customer service and card related issues will have to be dealt with at FIA Card Services.

After chugging through and submitting my application, I was unfortunately unable to get an instant decision on approval  (apparently being super cool isn’t good enough anymore).  An online application status check a day or two later still yielded the same result, so it looks like I’ll have to wait this out a bit.

Note: Discussion threads online mentioned that you can always call-in after applying online to get an instant decision from a representative, but you may be subjected to the act of some credit line swapping and/or closure if you have cards issued by Bank of America or MBNA/FIA.

Tidbits & Notes If You’re Also Considering This Card:

• Current BoA, MBNA, FIA cardholders won’t be able to convert an existing card to the Schwab Bank Invest First Visa Card, after all, the point is for Schwab to acquire a possible new customer.
• The Schwab One brokerage account has a $1,000 minimum balance requirement to avoid monthly fee, but this is waived when the account is linked to your Schwab Bank Invest First Visa Card.
• Although you don’t have to immediately open a Schwab One brokerage account, you will eventually have to open one if you wish to claim your accumulated cash back and withdrawal the cash back to an external, non-Schwab account.
• Opening a Schwab One brokerage account will get you another hard credit pull, as it is a separate and different financial product.
• If you qualify for a credit line of $5,000 or more (and most people should if they qualify for this card), you will receive a Visa Signature card, which means you have no preset spending limit, which means the credit limit on the new card will not be reported to the credit reporting agencies.

As you can see, there are a few quirks involved if you want to apply for this card.  But at the end, you are getting 2% cash back.  When combined with another card that gives higher cash back percentage for specific categories such as gas and grocery — you’re sure to be in cash back bliss!

Of course, all of the cash back is a moot point if you don’t pay your card in full.  I’ll update the post if my application is approved, follow by an eventual future post reviewing the card.

Update: My application was approved and I’ve received the Schwab Invest First Visa card.

This post "Schwab Bank Visa 2% Cash Back Credit Card" is from StopBuyingCrap.com.

A few weeks ago I requested and promptly received a $250 cash-back check from my Chase Freedom rewards card.  Being a forgetful tool bag, I quickly deposited the check in my checking account — least it slips my mind for 120 days and voids itself.

Although it was nice to receive the cash-back check in time for Christmas to buy myself a gift (being an ass, you have to resort to your mom and yourself for gifts), it was slightly bittersweet as this is most likely the last check I’ll claim from my Chase Freedom rewards credit card.

Truthfully, I hate juggling credit cards and try to limit the amount of cards I carry or accounts I open, but unfortunately the Chase Freedom card just didn’t cut it anymore.

To make a long story short, with my current spending pattern, I’ll be able to maximize cash-back better by a combination of using Blue Cash from American Express along with the new Charles Schwab 2% cash-back Visa card (more on this later).

The two versions of Chase Freedom cards I have opened have served me well, and I’ve wrote a fairly positive Chase Freedom rewards card review just a couple of months ago — but I can’t recommend the current version of the Freedom Rewards card that Chase is offering.  Chase has since stopped the 3% cash-back on top spending categories reward program, and the current version of the Freedom card doesn’t appear to have any compelling card reward program.

Hopefully Chase will continue to keep the old Chase Freedom cash-back program active for old cardholders.  Although I’ll be switching to different primary credit cards soon, I’m sure many people are still a fan of the Chase Freedom card.

This post "Last Cash Back Check from Chase Freedom Card" is from StopBuyingCrap.com.

In case you missed the news, federal regulators voted today to adopt sweeping new rules for the credit card companies, protecting us from some of the shadiest practices the credit card industry has conjured up through the decades.

These new rules will take effect by July 2010, and they are by far the most major smack down in terms of regulation for the industry in decades. Here are some of the new rules in our favor:

1. Double-cycle billing got axed, cajun style.
2. Payment allocation will now be to highest interest balance first or proportionately to all balances (so it won’t you longer to pay off balances).
3. Card holders will now have reasonable time to make payment (21 days).
4. Notification for change in terms has been changed from a minimum of 15 days notice to 45 days notice.

There’s a few more new rules on the table, and you can read about them via the resources below. So far, the Office of Thrift Supervision has voted on the new rules, and its expected that the Federal Reserve and National Credit Union Administration will vote on the new rules later in the day.

Although I’ve mentioned often that I love using credit cards and never really felt that card companies forced me into my prior debt, I have no illusion that many credit card companies policies and practices can make financial life of a cardholder living hell.

Hopefully these new rules will tilt the favor for future cardholders.  Despite the upcoming added protections, credit cards are still a financial tool that requires due diligence and care by consumers. You should always read all the terms and condition associated with a card carefully.

This post "Credit Cards Made a Little Less Evil with New Industry Rules" is from StopBuyingCrap.com.

From [Money & Shopping Blog] and [Adrants].

This post "There’s No Bailout Clause in Your Credit Card Contract" is from StopBuyingCrap.com.

Did you came here searching for information on FICA score?  What you’re looking for is actually a FICO score, which can be found at sites such as Equifax Score Watch.

It was Friday night and I was browsing the web, reading financial tidbits and news (yeah this is how every cool 20-something rolls during the weekend) — I noticed that there was a large confusion online between the financial terms of FICO and FICA.

To make matters worse, a quick search on Google shows that many websites use the term FICA score interchangeably with the term FICO score, without clearing up the difference between these two completely unrelated financial terms.

As my weekend web trolling is already going so well, why not write a post to clear up the misconception? This will for sure make the weekend extra cool. After all, who needs to go out when there’s blogging to be done!?

What is FICA?

FICA stands for Federal Insurance Contribution Act.  Without going into too much history about Social Security and Medicare, FICA basically mandates that you and your employer contribute a percentage of your income to this tax, in order to fund the aforementioned Social Security and Medicare.

For those that may not know, Social Security provides income to retirees, people with disability, and some other select groups of people, while Medicare provides for medical insurance coverage to persons over age of 65 and again, other select groups of people.

And that’s what the 6.2% of your paycheck goes to (your employer pays the other 6.2%).  If you’re a student being employed by the educational institution you’re attending, rejoice, you’re an exception to the FICA tax!

If you happen to be self-employed, your FICA contribution will be split to 12.4% for Social Security and 2.9% for Medicare. There are of course exceptions to this rule, whether you’re self-employed or a regular wage-earner. You can read more about these exceptions in the resource of links below.

But that’s about the gist of the term “FICA” and how it matters to you.  So does FICA have anything to do with credit score or is there even such a thing as a FICA score?

Nope!

To clear the acronym confusion up, read on.

What is a FICO Score?

A FICO score is a credit score, which in short is a score providing a grade on your overall credit worthiness.  A true, legitimate FICO score can be purchased from Fair Issac Corporation at myFICO.com or with the Equifax Score Watch monthly plan.  The score ranges from 300 to 850 — the higher your score the better your overall creditworthiness and likelihood to receive favorably interest rate when applying for a loan (home, auto, etc.).

These scores are formulated with data from your credit reports. Because you have three major credit reports from three different major credit reporting agencies (TransUnion, Equifax, and Experian), you may have three slightly different FICO scores.

Factors in your FICO score:

• 35% – Payment history
• 30% – Amounts owed
• 15% – Length of credit history
• 10% – New type of credit
• 10% – Types of credit used

In short, if you have a positive payment history (never paying late), your amounts of balances on your accounts are low, and you have a long history of positive accounts — then you most likely have a super credit score.

Those are the only factors of your FICO credit score. Your sex, race, color, religion, national origin, marital status, age, salary, occupation, and residency location will NOT be factors determining your score.  If its not in your credit report, then it’s not a factor.

Importance of FICO Scores

So why are FICO scores important and why are there so many people online searching about “FICA score?”

A good FICO score increases your chances of receiving favorable interest rate.  With current interest rates, that means when you compare between an excellent FICO score of 760 and a poor FICO score of 580, there will be a difference of $780 in monthly mortgage payment for a 30 year fixed, $300,000 loan.

If that didn’t get your attention, the interest difference is a low 5.63% APR versus a high 9.451% APR. This is a significant impact as when the mortgage is paid off, the difference in total interest paid will be about $280,000!

Thus knowing and keeping your FICO score can be pretty important.  As long as you properly manage your credit usage, your FICO score should be top-notch and a non-issue.

This concludes a brief primer on FICA scores. Woops , I mean FICO scores.

top photo credit: QuitoCarela

This post "What’s a FICA Score (FICO Score)?" is from StopBuyingCrap.com.

One of the best thing about the current trend on the web is the increasing abundance of free financial web services.  You’ll find one such service provided by Quicken Loans at Quizzle.com. This is a review of Quizzle.com, where you can get free credit score, report, and home value. Super sweet!

Like many new “Web 2.0 ish” websites, Quizzle has a clear emphasis on simplicity and ease of use. Slap in your zip code, fill out the personal information, answer a few credit-related questions to verify your identity (soft credit inquiry) — and within minutes you’ll have access to the free credit score, report, and home value (or if you rent, value of home you can afford). No need to fork over any credit card, the service as promised, is free.

Upon initial login, you’ll be greeted with a Quizzle score, which is formulated base on your overall home and money performances: credit, rainy day fund, budget, mortgage, and home affordability.  If you rent like me, you may not have a mortgage factored into your Quizzle score. [Click image above for larger screenshot]

Free Credit Report and Credit Score

Quizzle’s free credit report and score offering is actually pretty decent.  The credit report, although not as in-depth as a specific report from Experian, has all the necessary information you need to have a proper understanding of your credit history.  At the summary tab, you’ll find details of your personal information along with a list of financial accounts on your credit report.

Navigating through each tab in the Credit page will reveal a list of open accounts, closed accounts, negative accounts, and whatever public records that may or may not be on your credit report.  You’ll also be able to see the recent hard inquiries on your Experian credit report (soft inquiries were not listed).

The free credit score is straightforward: Quizzle provides you with a score from the ranges of 360 to 840 while giving you a grade rating from A to F (just like back in school, yay!).  The score isn’t a FICO score, but its free and gives you a general guideline of where your creditworthiness may stand.

Estimated Home Value and Home Affordability Value

If you own a home, Quizzle will provide you with an estimated home value and an appreciation grade using the automated valuation model.  Like Zillow.com, Quizzle will provide you with data about your home, giving some brief info on living area in sq ft., bedrooms, lot area in sq ft., and the year the house was built.  You’ll also see the home purchase history, estimated available home equity, and comparable home sales in the area. Although I don’t have a screenshot of this function, you can visit Quizzle’s tour page and click on “more info about your home” to see an example.

If you don’t own a home and you rent, Quizzle will spit out a simple affordable home caulation, based on your household gross, debt, and estimated down payment.  Thanks to Quizzle, I now know home ownership in my area is never within reach! Yay. (Slightly kidding, as Quizzle didn’t factor in assets that aren’t being calculated).

Budget Calculators

The budget section at Quizzle is fairly simplistic (in a good way). Quizzle will give you a brief look at your available cash by subtracting your living expenses and debt from your household income.  This is based on your initial input, but you can further refine the income, living expenses, and debt section by heading into each of the tabs — add, edit, and remove necessary information.

For example, in the debt section, Quizzle will automatically input all the balances from your credit card accounts based on your credit report — but since the credit report may be outdated or inaccurate, you can adjust and fine tune the amounts to your actual debt responsibilities.

Mortgage, Refinance, and Home Equity Loans

The mortgage section of the site will depend again on if you already have a mortgage or you’re looking for one.  If you’re looking for a mortgage, Quizzle will calculate a few different mortgage recommendations based on numbers you input.  Utilizing offers they have from the Quicken Loan program, Quizzle will provide the usual recommendations of fixed loan, ARM, and variance of interest-only loans.

If you already have a mortgage, Quizzle will provide you with some recommendations on refinance loans and home equity loans.  They give you a general guideline if you need to take out a home equity loan to pay off other higher interest debt, but you definitely shouldn’t rely solely on Quizzle’s recommendations to acquire a mortgage, refinance, or apply for a home equity loan.

You should be aware that the mortgage section of Quizzle is where the site generates potential revenue in return for providing the free service.  Just something to be aware of if you choose to use the “contact an expert” option when you check out the mortgage recommendations. Even with refined and accurate recommendations from Quizzle, you’ll be well served if you do additional research by trying other comparison services.

Rainy Day Fund

The last section of Quizzle is the Rainy Day Fund (emergency fund).  It is calculated based on 4 months net income and Quizzle will either give you a pat on the back for already hitting the 4 months net income goal for the rainy day fund, or give you other recommendations on what you need to do to build the emergency fund.  Not a mind-blowing feature, but a nice touch and good reminder on the importance of a well funded emergency fund.

Overall Quizzle.com Impression

Try as you might, you’ll find little to complain about at Quizzle.com.  They offer exactly what they say they will: a free credit report and score, along with free estimation of your home value, and a free budget tool.  The site is easy to use and navigate, and has enough information for you to dissect your current financial situation, especially if you carefully edit and input all your financial information.

Quizzle’s free report and score can be a nice supplement to the three free annual credit report you’re already entitled to from the credit reporting bureaus. Of course, if you’re not comfortable with giving out your personal information to a third party site, you won’t be using Quizzle.com to get the free credit report and score; never mind their mortgage recommendation services.

Quizzle’s overall revenue model appears to be referring potential customer to their Quicken Loan offerings in mortgages, refinance, and home equity loans — which makes perfect sense as Quizzle should be able to acquire more targeted customers that converts better. In short, if Quizzle continues to provide valuable free analytic, tools, and estimation along with refining their loan recommendations, this should be a clear win-win situation for both the mortgage-related consumers and Quizzle.

Pros:

• Free credit report and score. No strings attached.
• Free estimated home value via AVM method.
• Decent and free budget calculators.

Cons:

• Mortgage, refinance, and home equity recommendations can be more refined.

This post "Quizzle.com Free Credit Report, Score, Home Value, & Budget" is from StopBuyingCrap.com.

Earlier today, I was preparing to open a Discover More card as I never had a Discover card before.  I especially wanted to take advantage of the recent holiday promotion along with the occasional decent rotating 5% cash back the Discover Card offered.

Like always, I decided to check my credit report and score before opening a new account, just to make sure everything is all peachy.  Figuring I can kill two birds with one stone by taking Quizzle.com for a spin, I signed up for a Quizzle account to grab a free credit report and score.

As I was taking screenshots of the Quizzle website for the upcoming review, I noticed an unfamiliar account in my credit report:

A joint account opened just last month, with a balance of $20,000. Eh?

Digging further, I found out a family member went and opened a joint account under my name and their name, to take advantage of a 12 months 0% balance transfer offer.

Damn.

I won’t go into too much detail on who did it and how’d it happened, since a few other family members do read this blog.  But let’s just say that I’m a bit disappointed and wished they would have discussed this with me.

Although I often advise against opening joint accounts with family and friends (spouses and certain scenarios are exceptions), I would have been willing to open this joint account — as long as I was given proper notice and time to prepare and plan my credit, because I had other 0% balance transfer on other accounts.

Here are some quick tips on avoiding identity theft by a family member, especially if you live in an environment where it may be plausible:

• Place a credit freeze on your credit, this prevents access to your credit history and will require verification before any accounts are opened in your name.
• Opt-out of pre-screen offers. This can reduce the amount of offers you get in the mail and reduce the chance someone use one to open an account.
• Keep your mailing and billing address consistent.  If you use another address for residency purpose or whatever else, be mindful of the type of mailings that particular address may receive.
• Check your credit report frequently.  Remember, we get three free reports per year, so you can spread the three reports throughout the year.

So what will I do now?  Well, I think I’ll discuss the situation with the family member. I don’t think I’ll take any legal action as I’m positive they’ll pay this account off (plus I love and care about them). One silver lining in this is that the account in question is a joint account and isn’t solely in my name only (edit to add: this doesn’t mean I’m absolve of the financial responsibility for the account).

According to the FTC, 9% of identity theft cases are committed by a family member or relative. If you’re in a situation where you can’t resolve an identity theft by a family member amicably, the resources below should help you further.

This post "Sigh. A Family Member Stole My Identity" is from StopBuyingCrap.com.

Here’s a blast from the past — a post written well over two years ago on five reasons to stay away from store branded credit cards. Reposted today for your amusement.

Every time I see a person sign up for a retail store credit card at the check-out line, a little part of me dies inside. I would scream “No! Don’t do it!” silently, hoping to convey my dismay telepathically — unfortunately, it never seem to work.

There are about sixty-seven different reasons why you shouldn’t apply for a retail store credit card, but for the sake of simplicity and my sanity, let’s just go with five:

1. Shady credit lenders.
2. Interest rates are ridiculously high.
3. Tarnish your credit with unnecessary line of credit.
4. Benefits are usually nil while penalty fees are usually in abundance.
5. Some are store-only credit cards and can’t be used for purchase at other locations.

Reason #1: Shady Credit Lenders

When you apply for a store credit card, it is usually issued by a sub-prime lender in partnership with that particular store. You may enjoy shopping at that particular store, and the store may have great customer service, but be wary in associating the store’s credit card offering with the actual store.

Store cards like Gap Card, Banana Republic Card, etc. are issued by the infamous Monogram Credit Card Bank, an offspring of GE Money. They are notorious for their shady practices, such as magical late fees and magical finance charges even if you paid balance in full. If you don’t pay attention to the actual bank that issues the line of credit, you’ll be doing yourself a major disservice.

Reason #2: High Interest Rates

The interest rates are ridiculously high. Expect APR in the ranges of 20%-24%

“Sign-up for an IKEA card and get 15% off right now!”

Wow. 15% off the brand new dorm room set sounds like a smashin’ deal—but not if you carry a balance. Alright, no problem—all you have to do is pay in full and you’re set. Except when you deal with shady lenders like mentioned above.

“Woops, we accidentally charged you. We’ll fix that and credit your account right away.”

“Hmm? You still have those charges plus extra finance charges from the previous month? Well… okay, we can only remove one of them though.”

Reason #3: Potentially Hurt Your Credit

It’s one thing to build credit, it’s another thing to screw up your credit with a large amount of unnecessary accounts open. The entire ordeal can be made even more confusing by the fact that sometimes closing unused accounts may end up hurting your credit score, especially if you carry large balances.

It’s very simple. Don’t have more credit cards than you have fingers. A small discount at some retail store isn’t worth the amounts you’ll end up paying when you have trouble obtaining favorable mortgage rates in the future.

Reason #4: Low Benefits and High Fees

The benefits are usually stupid. Congratulations! You’ve spent $1,000 at Banana Republic. Here’s a $10 gift card! Oh, there’s a minimum purchase of $100.

But while the benefits are few and far in between, the penalty rates and fees are plenty.  These fees are usually higher than many regular bank issued credit card, even when compare to non-store branded sub-prime credit cards. If you stay vigilant, you may be able to avoid the fees, but using a credit card shouldn’t require mass paranoia — just a small dose of healthy suspicion.

Reason #5: Sparse Acceptance Locations

Some of these credit cards are store-only credit cards. If you don’t see a VISA, MasterCard, or a Discover logo like the Walmart card pictured above, you won’t be able to make purchases with the card at other locations. Not a big deal if you’re a frequent shopper at these specific stores, but when combined with all the other reasons above, this reduces the value and utility of the store credit card by quite a bit.  There’s little reason to make purchases with a credit card that can potentially give you so much trouble, especially when you have other options.

Alternatives to Store-Branded Cards

A lot of people seem to suggest store cards to build credit with, due to their general ‘no credit’ and ‘bad credit’ friendliness. In my opinion, they’re only to be used as a last resort in rebuilding credit.

If you have no credit because you’re a student, there are many student credit cards available from national institutions such as Citibank or Bank of America. The Citi mtvU Visa Card, despite being associated with the now-crappy music channel, is actually a pretty good pick for many college students.

If you have bad credit and want to shape up, try local credit unions or check out Patelco Credit Union’s Visa & MasterCard. It has been noted by others with bad credit that you should try applying by phone with Patelco to increase your chances of approval. You can also check with your local community bank or credit union to see if they offer secured credit cards.

If you’re simply looking for some rewards from your purchases — unless you’re a frequent shopper at the store — you’re better off with a regular cash-back card like the Discover More Cashback Card.  Cold hard cash means you’re not limited to spending your reward or cash back at one specific store.

Having said all that, the next time the cashier ask you if you would like to sign up for a store credit card, politely tell them “No thanks, I don’t think it’s a good idea to open a line of unnecessary credit without due research, especially since it may potentially jeopardize my credit.”

If you don’t, you may find yourself being stared at intently by a weirdo from the next check-out isle, with his lips slowly moving and seemingly whispering, “No… don’t do it.”

This post "Five Reasons to Stay Away From Store Branded Credit Cards" is from StopBuyingCrap.com.

If you don’t want to deal with the process of researching your credit worthiness before you apply for credit, this new service may just be what you’re looking for.

A fitting name for the service, as it gets you a credit “grade” in seconds, then provides you with a list of credit cards and home loans that you may qualify for (home loan portion didn’t seem to work for me when I tried this). Click on the picture above to see a snapshot.

Launched just recently in early September 2008, KnowBeforeYouApply.com is owned by Centrro Inc., a financial-search company founded in 2006, with one of the founder being the creator of the website OSpace, one of the first internet provider of credit reports back in 1997 (the service was later acquired by Experian).

Cliff Notes:

• You’ll have to provide your personal information: name, address, and last 4 digit of your SSN to do the credit pull.
• The credit pull is done on your behalf so it won’t lower your credit score.
• You can receive free monthly credit “grade” rating if you invite three friends to join (otherwise updated every 90 days).
• KnowBeforeYouApply doesn’t mention which of the three (or all) credit bureaus it use to pull your report.
• Offers presented doesn’t guaranteed approval. Remember, just because you have a high credit score/rating from whatever party that provides it (this includes a real FICO score), other factors are involved in granting credit (especially installment loans such as home or auto loans).

Pros:

• No need to provide your full social security number to use the service.
• Quick and easy, does exactly what it says.
• Free avenue to track your general credit worthiness movement.
• Useful place to drop by to have an additional peace of mind before you apply for credit.

Cons:

• Personal information on yet another website.
• Offers may not tailor specifically to your needs, so you should still do your own research.

Similar Services:

• BillShrink.com Reviewed
• Quizzle.com Reviewed
• CreditKarma.com (will post review on this soon)

This post "KnowBeforeYouApply.com: Get Free Credit Grade" is from StopBuyingCrap.com.

Since American Express did away with the 5% cashback on gasoline for the Simply Cash Business card, and my sister is hoarding the other family member account for Costco (which requires me to sign up for a new Costco membership if I want the TrueEarnings Business Card from Costco and AmEx) — I’ve decided to convert my Blue from American Express to Blue Cash Everyday from American Express. Oh, how I hate my sister.

Huh what?

Alright, here’s the gist in a possibly easier to understand version: I want a 5% cashback on gasoline credit card because my current Chase Freedom card only gives 3% cashback and I’m reluctant to open yet another credit card account, so I’ve decided to convert one of my American Express credit card.

Converting the card is straight forward enough, you grab your see through Blue AmEx, flip the back of the card and dial 1-888-BLUE-741.

After navigating through the voice menu, simply tell a customer service rep that you’ll want to convert your card. They may or may not transfer you to someone that specialize in this procedure.

AmEx CSR:

Mr. Cap, I’d love to be able to help you convert your card today, but I see here on my screen that you have about 11,000 in Membership Rewards points left on your Blue card.

Cap:

Huh what?

AmEx CSR:

Claim your damn points or you’ll lose them when you convert, asshole. (I may have paraphrased this a little bit).

Cap:

Okily Dokily!

So I have 11,000 points. What should I get from the Membership Rewards catalog?

I was thinking a Bluetooth headset for my Blackberry (although I’m perfectly fine with the $2 wired headset I have right now) along with some random $40 gift card, or a $100 Saks Fifth Avenue gift card that I’ll later sell on eBay.

Hmm… what a troubling quandary (What? DJI down almost 778 points? Controversial stabilization act failed to pass the House? This is more pressing dammit).

Look for a full review of the card once I get a chance to take it for a test spin.

Why Get the Blue Cash Everyday from American Express?

Earn 3% cash back at supermarkets. Earn 2% cash back at gas stations and department stores. Earn 1% cash back on all other eligible purchases. Intro APR for Purchases: 0% for 12 months Regular APR for Purchases: 17.24% – 22.24% Variable

P.S. I was kidding. I love my sister. *Aww*

This post "Converting My Blue AmEx to Blue Cash from American Express" is from StopBuyingCrap.com.

The problem with staying up into the wee hours of the night is that you’ll be hit with various types of television ads with incredibly annoying jingles — FreeCreditReport.com is one such type of ad.

Now, as a quasi-marketer, I appreciate the fact that The Martin Agency was able to come up with such catchy/annoying jingles, but the deceptively named service makes me wish Experian would have found a crappier marketing agency instead.

It has been two years since Experian, the company that owns FreeCreditReport.com, took obvious advantage of the government mandated Fair and Accurate Credit Transactions Act to promote their ‘free’ credit report service.

A lawsuit from the FTC, an inquiry by the Florida Attorney General, and thousands of consumer complaints later… FreeCreditReport.com continues to operate, and the catchy/annoying jingles continues to interrupt my favorite episodes of Kim Possible (just kidding, the ads aren’t placed into animation time slots).

The gist is simple: back before the complaints and lawsuit, Experian pitched FCR as a source to get “free” credit reports. What many consumer missed are the fine prints that states the requirement to enroll to Experian’s “Triple Advantage” program in order to receive a free credit report. The charges for the enrollment vary, from $79 per year to $12.95 per month to the current $14.95 per month.  In either case, canceling became a hassle, and many people either forgot or were unable to cancel within the trial period.

The current websites’ disclaimer and fine print is a bit clearer, but the color scheme and design obviously wants you to avert your eyes away from the notice of trial period (currently only 7 days) and monthly membership fee (currently $14.95).

Now, if you’re fully aware of the type of service FCR offers and still want in, then more power to you (FCR does offer unlimited Experian credit score and report along with credit monitoring), but you’re probably better off with other sources for your check needs:

Better, Cheaper, and Free Alternatives

• For your truly FREE annual credit report that’s provided by FACTA, head to AnnualCreditReport.com. No credit card information is required.
• For a credit score with more weight and use, head to myFICO.com and purchase a single score from a credit reporting agency of your choice (the link gives a 20% discount, which brings the cost for a single score and report to $12.76).
• For a credit monitoring service, consider Score Watch, also from myFICO. This service has a 30-day trial period option, otherwise it’ll cost $99.95 per year, or $9.95 per month with 3 months minimum required

This post "Crap: FreeCreditReport.com = Scam-a-licious" is from StopBuyingCrap.com.

If you’ve had the unfortunate experience to have been subscribed to this blog for over a year, you may remember that I wrote a “preview” to the Chase Freedom card back in 2007. As promised, here’s a full detailed review for those that may be interested in a decent cashback rewards card.

Quick Facts: Chase Freedom Credit Card

• Comes in Visa Signature or regular Platinum if you don’t qualify for Signature card.
• No annual fee for either version of the credit card.
• Good to Excellent credit needed to apply, 680 to 720+ in FICO score.
• Chase will pull any of the three credit reporting agency to get your credit info.
• Variable APR with the a current APR of 14.99% (like many rewards card, a bit high)
• If you apply with FICO scores below 650, some delinquency on your credit history, and was declined, you may be able to ask for reconsideration by calling the number on the rejection letter.
• Save time and trouble by converting one of your old Chase credit cards into the Freedom rewards card.

Applying for the Credit Card

A quick scan of the credit pulls database shows that those receiving an approval without issue have 700+ in FICO score, with no blemishes on their credit history. These people generally received instant approval or approvals within a few days.

Those with some minor blemishes on their credit history and lower FICO score will most likely get the “notification within 30 day” notice, but unless you have major delinquency on your account, you should be able to get approval without issue (and especially on reconsideration).

If you have any doubts to your credit standing, you should NOT apply for this rewards card, as it is a prime card that requires good to excellent credit.

Most Chase credit cards (non co-branded ones) can be converted to the Freedom card without issue, so if you want to enjoy cashback, you can easily call customer service and ask them to convert your old Chase card into the Freedom Rewards card (my card was converted from a plain vanilla, 7.99% fixed APR, Chase Visa card into the current Chase Freedom card).

If you already have a Chase card, converting to the Chase Freedom is my recommended method to get the rewards card, as it’ll save you the hassle of applying for new credit and avoids the opening of yet another revolving account on your credit report.

Rewards Structure: Bonus Categories and Cashbacks

We’ll mostly look at the cashback aspect of the rewards card, as cold-hard cash is always better than points. With cashback, you can buy the crap you really want instead of being limited to the selections in Chase’s rewards catalog.

You earn 1% or 1 point for each $1 in purchases. You’ll earn an additional 2% or 2 point for purchases made in the top three bonus categories where you spend the most.

Bonus cashback: When you accumulate $200 in cashback, you can claim a $250 check, in essence making this card into a 3.75% / 1.25% cashback rewards card.

Merchants that fall into the bonus categories are:

• Grocery store (no warehouse clubs or discount stores, or departments of superstores)
• Gas and convenience stores
• Quick service payment/fast food restaurants
• Telecommunications
• Cable/satellite and TV/Internet service providers
• Video rentals
• Department stores
• Dry cleaners
• Drugstores
• Movie theatres
• Pet supply stores and veterinary services
• Beauty salons and spans, or gym/recreation membership
• Local and suburban commuter passenger transportations (ferries, bridges, tolls, parking garages, taxis/limos)

The trick in receiving the extra two percent in cashback (or points if you’re into that), is for the merchants to classify their merchant location as one of the following categories above.

Generally, if you’re buying groceries at a supermarket, or gas at a gas station, you’ll receive the bonus cashback without issues. However, if you buy groceries at a Walmart Supercenter, or gas at Costco, you won’t receive the bonus cashback.

Caveats: Although there are no cashback limits to regular purchases, there is a monthly $600 limit to the bonus categories; so in short, you can only earn about $18 in bonus cashback per month. If this limit is a concern, you can always supplement your cashback earnings with the Discover More Cashback Card. You should also note that the cashbacks and points on the Freedom card also expire in 36 months or 60 months, respectively.

Tracking and Requesting Cashback

Thanks to Chase’s new online account website, you can easily see your monthly cashback earnings once you’ve logged into your online account.

As you can see above, there is about $178 accumulated in my Freedom Visa card. In addition to the previous $250 check already requested, this puts my total cashback since owning the rewards card to $428. Not too shabby for a year of frivolous spending.

Cashbacks can be requested within this page whenever you reach $50 in cashback. You can also request a check at the $100 or $150 level. But you mightas well save up to the $200 level so you can request the bonus cashback of $250.

As the screenshot shows, you can also switch your rewards system from cashback to points in this online account page. This way, instead of cold hard cash to pay off the hitman, you can now save yourself some trouble and just give your in-laws Macy’s gift cards.

Visa Signature and Additional Card Benefits

The rewards card comes in a Visa Signature or regular Platinum (if you don’t qualify for Signature). Visa Signature benefits includes: concierge service, no pre-set spending limit, emergency cash disbursement and card replacement, warranty manager service, purchase security and other common credit card benefits such as lost luggage reimbursement and auto rental collision damage waiver.

The Visa Signature concierge service is provided as a complementary service by a third party, Mondial Assistance. Although I’ve initially read good things about the Visa Signature concierge service, after a few trial runs via phone and email request, I’ve found the concierge service to be nothing extraordinary.

Generally, for fast prompt response to inquiries, your best bet is to phone the Visa Signature concierge service. You can expect decent service for restaurant recommendations and reservations in major cities or travel arrangements.

If you’re emailing for information or request, make sure to clearly state what you need and the timeframe of the request as that may help speed up the response time (2 out of 4 of my email request went unanswered).

There are two benefits that are actually fairly hot: Purchase Security can potentially reimburse you up to a maximum of $500 per claim in the event of theft, damage due to fire, vandalism, etc. within the first 90 days of date of purchase. Warranty Manager Service allows for you to register a product and extend a manufacturer’s warranty for an additional year, for products with manufacturer’s warranty of less than three years.

With these two benefits, you wouldn’t have to worry about your brand new laptop being stolen within 90 days of purchase, or the battery bursting into flames six days after the warranty expires!

Online Account Usage and Features

Chase’s online account usage is actually decent and there are a few handy features you may be interested in. You can setup personalized alerts to get notification to various email accounts, text messages to cell phones on different type of scenario and conditions (account overdrawn, balance above XX amount, activity on account of more than XX amount, etc.)

Along with personalized alerts, you can also setup automatic monthly bill payment with the online account. The type of bills you can setup to pay varies from your auto insurance to your telecommunication bills. If you don’t already have automatic bill payment setup at your respective services, this will be a good place to have everything centralized, into one account — plus, it’ll help you accumulate cashback faster.

click to enlarge

Like many other online accounts, you can view your past recent statements, check your balance, pending charges, available credit, payment status and due dates. In addition to recent statements, if you sign-up for Chase’s paper-less statement system, Chase will store your statements up to six-years. During the end of each year, you will also see a year-end summary, detailing your crazy spending.

click to enlarge

Chase Customer Service

There are a few different methods to contact Chase if you have questions regarding your Chase card account. You can use the secure message center in the online account page, or if the matter is more pressing, you can contact Chase at the number on the back of your Chase Freedom card or the number on the credit card statement.

Depending on the time of the day, your call may be routed to the call center abroad, or you may reach a stateside representative. Issues that require more care will generally need a specific department from Chase, which are usually only available stateside and at normal business hours (for example, if you have an issue with a bill payment, you may not be able to reach help during the middle of the night).

I’ve had a situation where I accidentally made a significantly large payment to the wrong Chase Freedom card (I have two), and needed them to make the credit payment adjustment. To Chase’s credit (crappy pun not intended), the problem was resolved after two quick calls, with a prompt fix to my accounts within 24 hours.

Your results with customer service will of course vary, but as with any calls to a nation-wide financial institution, you’ll get better results during non-peak hours, which is usually prior to 9 AM or after 6 PM.

Overall Impression and Recommendation

If the Chase Freedom rewards card was a complete crap, it certainly wouldn’t be in my wallet for over a year. As a cashback card, it is fairly decent in its percentages, and generous in its bonus categories.

The $600 bonus spending limit in the bonus categories can certainly be a drag, but for many people, spending $600 in some of these specific categories can also be difficult, so the spending limit will only be a negative factor if your spending exceeds the limit. For those people, they tend to use the Freedom rewards card as a secondary cashback card, mainly to charge for specific monthly expenses such as telecommunications, utilities, or veterinary services.

If your monthly spending limit in those categories doesn’t exceed the $600 cap, then the Chase Freedom can be a good primary cashback card, if you don’t already have a better cashback credit card.

Generally, if you’re already grandfathered in a 5% cashback card, or have a card that suits your spending pattern, then you should definitely stick with that particular card, and only consider the Chase Freedom as a secondary choice.

If you already have a plain-vanilla Chase Visa card, you can easily call customer service to have them do a product swap to the Freedom rewards card. This method is recommended, as you avoid opening another revolving credit line to your credit profile.

For those that are still using credit cards that offer little in terms of rewards and cashback and pay their bills in full monthly, you should consider getting a rewards card like the Chase Freedom, or a similar rewards card that suits your spending pattern.

There is of course one major point you should take note of before getting the Chase Freedom card or any other rewards credit card. As a financial tool, credit cards can easily be a double edge sword. Along with their benefits, rewards, and convenience — they can become a real financial burden with irresponsible use.

Like many rewards credit card, the Chase Freedom has a higher interest rate than normal prime credit card with lower fixed rates. Any cashback you earned will be a moot point if you don’t pay your bills in full and accumulate interest.

Having said that, if you can manage your credit and spend wisely and you already pay your bills in full each month without issue, there’s little reason why you shouldn’t utilize the cashback from the Chase Freedom rewards card. In the long run, $428 in cashback isn’t something life changing — but man, sprining for those extra-soft toilet paper with the cashback money sure is sweet.

Update: Because Chase has changed the rewards structure of the Chase Freedom Rewards card, the ratings below have been updated to reflect the new changes. Please check Chase’s official website for finalized terms and benefits of the current Chase Freedom rewards card.

Chase Freedom Review Rating:

Cash Back: 4 out of 5

Card Benefits: 3 out of 5

Interest Rate: 3 out of 5

Customer Service: 4 out of 5

Pros:

• Good online account interface with many useful features.
• Base cashback is unlimited and bonus cashback categories are numerous.
• Claiming cashback is straight forward — redeem at every $50 level, or save up to $200 for the bonus $250 check.
• Visa Signature benefit of Purchase Security and Warranty Manager is a plus.
• With good credit, you will often be presented with prime balance transfer offer within the online account page.
• It’s a Visa card, which means it’s accepted almost everywhere.

Cons:

• Bonus cashback is limited to $600 in spending per month.
• Cashback expires in 36 months and points expire in 60 months.
• High interest rate, not recommended as a balance carrying card.
• 3% International transaction fee = don’t bother taking this card with you abroad.

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